A slice of pizza gets pricier

[stefan]

A slice of pizza gets pricier
Rising wheat prices are pushing up costs for baked goods, and foods from muffins to pizza are getting more expensive.
By Allan Chernoff
Last Updated: March 19, 2008: 12:09 PM EDT
CNN MONEY - Issue #1 America's Money


NEW YORK (CNN) -- Pizzeria owner Joe Vicari shakes his head as he prepares to rip open a 50-pound bag of flour for another batch of dough.

"That's 37-bucks. $37. I couldn't believe it!" says Vicari.

Since opening Mariella Pizza in mid-town Manhattan 30-years ago, Vicari, says he has never experienced such a jump in the cost of his ingredients.

"I can't even believe how much the flour [goes] up. When I see the bill I can't believe it, that's too much," says the veteran pizza maker, who emigrated from Sicily. Only four weeks ago, Vicari says, he was paying just $16-a-bag for Gold Medal brand flour, which at $37-a-bag now seems more golden than ever.

Executives at his supplier, Cremosa Food of Melville, New York, did not return CNN's repeated phone calls, though a source at the company confirms there are plans for a price hike to $40-a-bag in the next week. Cremosa, the source said, is allocating flour to restaurants, refusing to allow customers to buy more than they had purchased the prior week.

Vicari struggles with the thought of raising the price of a slice, which he lifted to $2.50 only a few months ago due to an increase in cheese costs.

"Over here people come to buy pizza, working people. How much [am] I going to raise the pizza now?" asks Vicari. "Somebody come in here for two slices, and I take $5. I feel very, very bad for the person."

But, he concedes, if flour rises a few dollars more, above $40-a-bag, he probably will pass along the higher expense to customers.

The cost of cereals and bakery products climbed at an annual rate of more than 9% last month, according to the Bureau of Labor Statistics, compared to a rise in the overall Consumer Price Index during the past 12 months of 4%.

Indeed, it's not only pizza that's becoming more costly. Baked goods of all kinds are heading higher as the price of flour rises due to the fact that wheat is trading near a record high.

At the Chicago Board of Trade a bushel, 60-pounds of wheat, now trades for more than $1100, more than two-and-1/2 times what it was just a year ago.

Why? You can lay part of the blame on ethanol. Huge demand for ethanol has farmers planting more corn to produce the fuel when they could be growing wheat.

"Ethanol was competing against wheat for acres in 2007," said Joe Victor, grain analyst with Allendale Inc.

Poor growing conditions last year also affected the global wheat crop, from a winter freeze in the U.S. to droughts in Australia and France.

And, the dollar sinking to a record low makes U.S. wheat relatively cheap for foreigners.

"Fifty-nine-percent of everything we raised in 2007 is leaving the U.S.," said Victor. "That's 9-10% greater than normal." As a result, Victor said, U.S. wheat supplies are at their lowest level since the end of World War II, another factor pushing prices skyward.

The good news for U.S. consumers is that high wheat prices have led farmers to plant a large crop of winter wheat, which could temper retail prices later this year.

But, for now, it appears likely the cost of baked goods is heading higher.

"It's killing us, it's killing us. It's forcing me to pass it on to the consumer," said Frank Karalis co-owner of Europan Bakery Caf

[JP]

And as the cost of diesel keeps rising, so will the cost of the products that are transported by the tractor trailers.

[Deathcricket]

Why? You can lay part of the blame on ethanol. Huge demand for ethanol has farmers planting more corn to produce the fuel when they could be growing wheat.

"Ethanol was competing against wheat for acres in 2007," said Joe Victor, grain analyst with Allendale Inc.

This part made me LOL. For years I've been hearing about this prairie grass the rest of the world grows. Makes sense to me.

http://www.sciam.com/article.cfm?id=grass-makes-better-ethanol-than-corn


This means that switchgrass ethanol delivers 540 percent of the energy used to produce it, compared with just roughly 25 percent more energy returned by corn-based ethanol according to the most optimistic studies.

The use of native prairie grasses is meant to avoid some of the other risks associated with biofuels such as reduced diversity of local animal life and displacing food crops with fuel crops. "This is an energy crop that can be grown on marginal land," Vogel argues, such as the more than 35 million acres (14.2 million hectares) of marginal land that farmers are currently paid not to plant under the terms of USDA's Conservation Reserve Program.

But yeah, lets grow corn for ethanol instead? What am I missing here? Someone enlighten me.

[R]

The whole "ethanol is competing for our food acre" is bullspit in my opinion, since 80 percent of the corn we grow and 90 percent of the soybeans are fed to livestock, not to people. Converting grain into meat is an incredibly inefficient way to feed a population...

Pounds of potatoes that can be grown on 1 acre of land: 20,000
Pounds of beef that can be produced on 1 acre of land: 165

http://www.newveg.av.org/realities.htm

[accadacca]

There goes those 5 buck pizzas. :nono: :haha:

[fouristhenewone]

The whole "ethanol is competing for our food acre" is bullspit in my opinion, since 80 percent of the corn we grow and 90 percent of the soybeans are fed to livestock, not to people. Converting grain into meat is an incredibly inefficient way to feed a population...

Pounds of potatoes that can be grown on 1 acre of land: 20,000
Pounds of beef that can be produced on 1 acre of land: 165

http://www.newveg.av.org/realities.htm


Amen brother. While I agree that corn-based ethanol is not a green solution that it is made out to be, this is another article where the author has taken the easy way out, rather than addressing one of the true culprits.

[MY T PIMP]

The whole "ethanol is competing for our food acre" is bullspit in my opinion, since 80 percent of the corn we grow and 90 percent of the soybeans are fed to livestock, not to people. Converting grain into meat is an incredibly inefficient way to feed a population...

Pounds of potatoes that can be grown on 1 acre of land: 20,000
Pounds of beef that can be produced on 1 acre of land: 165

http://www.newveg.av.org/realities.htm

Those damn Atkins Dieters! Their screwing up the world. :nono:

[MY T PIMP]

My dad buys his grain in bulk for the year. He just paid almost $.50 lb. However his supplier contests the ethynol argument, they say that most of its going export. Maybe exporting for beef, I don't know but it is exporting.

As far as an arguement for beef. It takes much less work for a farmer/rancher to grow beef than it does to grow produce. And as far as your numbers. My dad has 10 head of beef a year which almost double their size in the 3 months of summer off of his meezily 3 1/2 acres of pasture. That seems to be alot more than what your numbers are reflecting.

[Deathcricket]

The whole "ethanol is competing for our food acre" is bullspit in my opinion, since 80 percent of the corn we grow and 90 percent of the soybeans are fed to livestock, not to people. Converting grain into meat is an incredibly inefficient way to feed a population...

Pounds of potatoes that can be grown on 1 acre of land: 20,000
Pounds of beef that can be produced on 1 acre of land: 165

http://www.newveg.av.org/realities.htm

Ahh yeah! Total agreement then. Also being new technology, I'm sure the process isn't as efficient as it would be once it hit "mainstream". I would have been more satified with "rising gas prices" like was stated by someone else.

Converting grain into meat may be inefficient but I admit I crave it. I never drive home thinking I'm gonna have a nice big fat potato, yummy. But I do start thinking about some rare prime rib every once in awhile. *drool* Doesn't matter if it's beef, pork, or venison. Guess I'm just a dumb carnivore.
:haha:

[R]

The whole "ethanol is competing for our food acre" is bullspit in my opinion, since 80 percent of the corn we grow and 90 percent of the soybeans are fed to livestock, not to people. Converting grain into meat is an incredibly inefficient way to feed a population...

Pounds of potatoes that can be grown on 1 acre of land: 20,000
Pounds of beef that can be produced on 1 acre of land: 165

http://www.newveg.av.org/realities.htm

Ahh yeah! Total agreement then. Also being new technology, I'm sure the process isn't as efficient as it would be once it hit "mainstream". I would have been more satified with "rising gas prices" like was stated by someone else.

Converting grain into meat may be inefficient but I admit I crave it. I never drive home thinking I'm gonna have a nice big fat potato, yummy. But I do start thinking about some rare prime rib every once in awhile. *drool* Doesn't matter if it's beef, pork, or venison. Guess I'm just a dumb carnivore.
:haha:

In defense of vegetarianism, craving something doesn't make it right. It's like saying you crave a prostitute, so it's okay.

I know that's a strong example, but it does illustrate a moral imperative.

And no, you're not a dumb anything. We live in a very affluent society, and a lot of what is all around us is pretty unhealthy.

I have a lot more to say about it, but I have to go shoot a ball game now. I'll check back tonight.

-R

[denaliguide]

whether it's for ethanol, feeding cattle or export, doesn't change the fact that farmers are planting less wheat. thus, less wheat is available for purchase and sale. simple supply and demand. demand is high, supply is low, equals a rising price.

and i've said it before. vegetables are what food eats. i'll take a nice steak over a plate of brussel sprouts.

[ericchile]

whether it's for ethanol, feeding cattle or export, doesn't change the fact that farmers are planting less wheat. thus, less wheat is available for purchase and sale. simple supply and demand. demand is high, supply is low, equals a rising price.

and i've said it before. vegetables are what food eats. i'll take a nice steak over a plate of brussel sprouts.

Or is it that inflation is in effect and they just need to be paid more for the same amount of wheat that is put out?

I know I had to switch jobs this past year because my previous employer just wasn't paying the bills...

[Deathcricket]

In defense of vegetarianism, craving something doesn't make it right. It's like saying you crave a prostitute, so it's okay.

I know that's a strong example, but it does illustrate a moral imperative.

/train wreck :)

Whoa... I have the utmost respect for a person who has certain morals and lives their life by them. I think if a person feels that they as an intelligent person, should not kill another lifeform? THAT IS AWESOME! It's all about what makes you happy too live at peace. I hear other people do it for "healthy" reasons. Again all good.

That being said, I have no problem with prostitution. As long as it's between consenting adults and doesn't affect me, I have no problem what "other" people spend money on. So in my mind neither one is wrong, but again my moral compass is 180 degrees of yours.

Again, total respect for believing in something and following through on it. I have a feeling this thread is about to turn nasty



Just not my bag baby!

*suits up in flame proof underroos*

[sparker1]

Vegetarianism is a religion, and like all others, the most obvious precept is trying to convince others to adopt it. I like steak AND potatoes, preferably together. I have nothing against prostitutes, just don't need them. Inflation is a complex issue and I don't have all the answers. It does seem that greater world-wide demand for lots of products is having a huge impact on the price of oil and food, and everything is eventually affected. We, as individuals and as a country, need to wake up and re-gain some competitive advantages. Right now, our greed is being fed by corruption more than by invention.

[R]

Vegetarianism is a religion, and like all others, the most obvious precept is trying to convince others to adopt it. I like steak AND potatoes, preferably together. I have nothing against prostitutes, just don't need them. Inflation is a complex issue and I don't have all the answers. It does seem that greater world-wide demand for lots of products is having a huge impact on the price of oil and food, and everything is eventually affected. We, as individuals and as a country, need to wake up and re-gain some competitive advantages. Right now, our greed is being fed by corruption more than by invention.

I will admit that vegetarianism has some very religious aspects, but like a lot of the more positive aspects of various religions, its most important characteristic is that it's practical. It works. It's smart. And unlike a lot of religions, it isn't based on mythology, spiritualism, or magic.

>>A religion is a set of beliefs and practices often organized around supernatural and moral claims, and often codified as prayer, ritual, and religious law. Religion also encompasses ancestral or cultural traditions, writings, history, and mythology, as well as personal faith and mystic experience. The term "religion" refers to both the personal practices related to communal faith and to group rituals and communication stemming from shared conviction.<<

[chickenlicken]

Maybe our government should stop paying the farmer to not farm their land! It gives me a rash that we pay some farmer to let his land sit idle so we don't have an overabundance of soy/wheat/alfalfa or what ever the crop is that somebody is lobbying for. Can't we just let the free market drive pricing?

[Deathcricket]

Yeah that would be logical. No way they going to do something that makes sense.

[trackrunner]

Maybe our government should stop paying the farmer to not farm their land! It gives me a rash that we pay some farmer to let his land sit idle so we don't have an overabundance of soy/wheat/alfalfa or what ever the crop is that somebody is lobbying for. Can't we just let the free market drive pricing?
In this case it is a double subsidy. First the farmer is given a subsidy to farm the land. Subsidies create an over production than the market will allow at the current price. Too much supply and farmers don

[RedMan]

Don't get me started on the USDA


:kboom: :kboom: :kboom:

[chickenlicken]

I want a job that pays me not to work. :nod:

[Thomas]

I love the Presidential debates where every candidate has the

[sparker1]

Candidates know everything, incumbents are dumb.